The NHS in England currently spends about £11 billion a year on goods and services from its suppliers, ranging from complex and expensive intensive care and diagnostic equipment, to examination gloves and paper clips. This represents approximately 25 per cent of trusts' total revenue expenditure (including pay).
Effective management of the supply function is critical for NHS trusts. Firstly, many trusts are under extreme financial pressure and reducing the costs of purchases represents a relatively painless means of achieving economy without affecting and often improving patient care. Secondly, procurement and supply professionals need to play a prominent role alongside other professionals in the trust to ensure that goods and services are of adequate quality, do not increase clinical risks and are purchased economically. This means working closely across most departments within a trust and with other organisations outside the trust.
Included in this report:
- management and strategy
- technology for procurement and supply
- people
- determining what to buy and from whom
- applying the rules of competition
- placing and managing orders and processing invoices
- good procurement practice and savings